Additional tax - You calculate this tax separately, using Form T1172, Additional Tax on Accumulated Income Payments From RESPs. Include a completed copy of Form T1172 with your return for the year you receive the AIP. You have to pay the additional tax by the balance due date for your regular tax, usually April 30 of the year that follows the year in which you received the AIP.
Common-law partner - This applies to a person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:
a) has been living with you in such a relationship for at least 12 continuous months;
b) is the parent of your child by birth or adoption; or
c) has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for suppport.
In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship.
Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than one described in b) or c) above) will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.
Reference to "12 continuous months" in this definition includes any period that you were separated for less than 90 days because of a breakdown in the relationship.
RRSP deduction limit - This refers to the maximum amount you can deduct from contributions you made to your RRSPs or to a spousal or common-law partner RRSP for a year. The calculation is based, in part, on your previous year earned income (excluding transfers to your RRSPs of certain types of qualifying income). Pension adjustments (PAs), past service pension adjustments (PSPAs), pension adjustment reversals (PARs), and your unused RRSP deduction room, are also used to calculate the limit.
Post-secondary educational institution includes:
- a university, college, or other designated educational institution in Canada;
- an educational institution in Canada certified by Human Resources and Social Development Canada as offering non-credit courses that develop or improve skills in an occupation; and
- a university, college, or other educational institution outside Canada that has courses at the post-secondary school level, as long as the student is enrolled in a course that lasts at least 13 consecutive weeks.
Public primary caregiver - The department, agency or institution that maintains the beneficiary or the public trustee or public curator of the province in which the beneficiary resides.
Qualifying educational program - An educational program that lasts at least three consecutive weeks, and that requires a student to spend no less than 10 hours per week on courses or work in the program. For an EAP to be paid to a student in a program at a university, college, or other designated educational institution in Canada, the program has to be at the post-secondary school level. The program will not qualify if it is taken at a time during which the student is receiving employment income (excluding part-time or temporary employment to finance studies) and the program is taken in connection with, or as part of the student's employment.
Regular tax - This is the tax you calculate when you complete your return. It is based on your total taxable income.
Spousal or common-law partner RRSP - A spousal or common-law partner RRSP is:
- an RRSP to which the annuitant's spouse or common-law partner contributes;
- an RRSP that receives payments or transfers of property from RRSPs to which the annuitant's spouse or common-law partner has contributed; or
- an RRSP that receives payments or transfers of property from RRIFs to which the annuitant has transferred amounts from other spousal or common-law partner RRSPs.
Spouse - This applies only to a person to whom you are legally married.
